Accounting For Stock-Based Compensation

3 Months Ended

Oct. 31, 2015

Accounting for Stock-Based Compensation

Stock-based compensation expense is recognized using the fair-value method for all awards. The Company determines the fair value of its option awards using the Black-Scholes option pricing model. Options granted are priced at the fair market value of the Company's stock on the date of grant. There were no stock options awarded during the first quarter of Fiscal 2016. The weighted average fair value for options granted during the three months ended October 31, 2014, was $3.05 per share. For the three months ended October 31, 2015 and 2014, the Company recorded pre-tax stock-based compensation expense associated with stock options of $1.1 million and $1.3 million, respectively, and recorded $0.3 million and $0.4 million, respectively, of related tax benefit.

The following table summarizes stock option activity during the nine months ended October 31, 2015:



	Options Outstanding		Weighted Average Exercise Price
Outstanding at July 31, 2015	7,191,442		$	29.38
Granted	—		—
Exercised	(85,599	)	18.89
Canceled	(128,356	)	37.77
Outstanding at October 31, 2015	6,977,487		$	29.36

The total intrinsic value of options exercised during the three months ended October 31, 2015 and 2014, was $1.0 million and $5.7 million, respectively.

The following table summarizes information concerning outstanding and exercisable options as of October 31, 2015:



Range of Exercise Prices	Number Outstanding	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price		Number Exercisable	Weighted Average Exercise Price
$ 0.00 to $17.69	1,296,997	1.78	$	17.10	1,296,997	$	17.10
$17.70 to $23.69	1,432,462	3.26	21.47		1,432,462	21.47
$23.70 to $29.69	803,268	5.09	29.12		803,268	29.12
$29.70 to $35.69	1,668,317	6.44	34.22		1,418,936	34.32
$35.70 and above	1,776,443	8.52	40.21		312,549	41.86
	6,977,487	5.29	29.36		5,264,212	26.24

At October 31, 2015, the aggregate intrinsic value of options outstanding and exercisable was $30.4 million and $30.4 million, respectively.

As of October 31, 2015, there was $5.9 million of total unrecognized compensation expense related to non-vested stock options granted under the 2010 Master Stock Incentive Plan. This unvested expense is expected to be recognized during the remainder of Fiscal Years 2016, 2017, and 2018.